Current mortgage rates

Interest rates are increasing.

Hope to close my mortgage shortly.

1.5m chf mortgage. 7 years fixed at 1.25%. What do you think?

@Cortana. Happy to hear from you as the specialist :slight_smile:

As of today I would consider this as a great offer:

5 years 1.20%
6 years 1.27%
7 years 1.33%
8 years 1.39%
9 years 1.43%
10 years 1.47%

Anything below that is exceptional.

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It’s a tricky situation indeed. However, I’m not to sure if the curve has really changed. It’s maybe just temporarily that we see higher rates. Have you checked also the Saron rates? I know the situation and I did not have the balls to go all in into Saron when I did my mortgage in 2017 afterwards I switched all into fix mortgage. The thing is that you need to feel ok with the rates. I have also used Moneypark which helped me to get a good deal (I’m now with Swisscanto) which I would probably not have found on my own. I think there are now quite some brokers around which support you without a fee from your site (of course they get kickbacks)

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Just heard from some friends. Went to finalise their mortgage - rate had increased. Went back again 4 days later to negotiate it and rate had increased again…5000 CHF per year increase

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Wow that’s crazy, glad I’ve forward fixed (12 months in advance) my 5y for 0.69% (nice number indeed) which came into effect two weeks ago. almost double for the same money seems crazy.

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how much in advance can you really fix a mortage?

I heard that if the mortgage offer did not require at least 2x higher superior approvals, it’s not a good offer. Is it true? How far can the regular bank employee go?

Depending on the hierarchy structure. For example 10 years:

Employee: 1.75%
Branch manager: 1.60%
Regional manager: 1.45%
CEO/head of Retail Banking: 1.35%

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Try valuu.ch

Great tool to see instant offers from several companies.

According to my previous bank ZugerKB they claimed not more than 180 days before start. However LUKB happily forwarded over 11 months. However the bank contact is the brother in law of a friend, so might have been slightly exceptional.

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Are RE prices also starting to go down? Or interests need to go quite a bit higher before prices start to decrease?

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1.25% is good. The cheapest current offer for 7-year FRMs (Avantage Service from BCGE) is only slightly lower at 1.2%:

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Back in the 90s (RE crisis in Switzerland) most people had a variable mortgage and fixed mortgages weren’t that widespread. So the sudden increase in interest rates was felt very fast. Today 80% of all mortgages are fixed rate mortgages, most of them 8-10 years. So there is a time lag for sure.

But people tend to overpay anyway. So there might be little to no impact if we stay below 2%. We’ll see.

Thank you All.

For everyone that is looking at rates now. Hope it’s helpful.

Just closed at 1.28%. Big bank. I believe it went up to regional manager. Indirect amortization of 3a through bank passive funds.

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Best rates I could get is form the Postal pension fund through valuu.ch

Check rates here

Feeling like my reading and preparation is literally paying off! Was tracking rates and insisted to renegotiate my mortgage before my bankers vacation and got 6years at 1.26%.

would’ve been slightly less at 3-5 but I had to round up to match the dates the tranches will end as I work to merge them back - previously mentioned in another feed.

I still find it crazy : the bank had convinced my father in law to have 4 tranches and 2 different dates, so takes me 3 renewal periods to undo. Argh!

At least they agreed to stop amortisation and I’m waiting on a new contract to free up my 3a from “nantissements” and end indirect amortisation with no direct amortisation either…almost there!

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Indirect amortization is not bad, as long as it’s invested in stocks or combo of stocks/bonds - prerequisite low cost (ideally <1%)

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Totally agree. I think indirect amortisation is amazing.

The bank I’m with has been increasingly painful for that though. I was only allowed to invest in Swisscanto funds capped at 45% actions with a high TER and high droit de garde (basically rétrocessions) on top. The funds have still done pretty well overall but knowing what I could have since 2 years is a bit frustrating.

Since two years, they’ve been literally saying they don’t let anyone invest their 3a when it’s in gage and I’ve had to ask for a special dérogation each time since I already had invested mine in the past. Pain in the ass due to changing bank policies and them not being smart enough to grandfather the existing clients prior to changing policies. I really had to insist to keep doing what I had been told I could do which a client shouldn’t have to do.

In the end, so glad I invested it right away in 2013, but be attentive to changing bank policies before you sell thinking to reinvest in another fund or better yet when picking your bank for your mortgage in the first place.

Edit: anyone have a mortgage with viac or finpension as indirect collateral? Will another bank accept that your indirect 3a is not with them directly? Probably not but thought I’d ask…better to put 2ieme as gage then no?

Not possible. Indirect amortization is always with the bank that gave you the mortgage.

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UBS offers passive products with ok TER for the 3a pillar. And up top 100% stocks.

Don’t know if there are other banks with good solutions too